Motilal Oswal Financial Services on Thursday reported Rs 536 crore in consolidated net profit for the quarter to September, a full 81 per cent growth year-on-year and the highest ever quarterly profit, driven by investment gains to the tune of Rs 267 crore and the record high performance of the broking vertical.
The city-based brokerage-led financial institution said its consolidated revenue grew 46 per cent annualised to Rs 1,094 crore.
For the half-year ending September, consolidated revenue grew 42 per cent annualised to Rs 1,953 crore, and the group earned a net profit of Rs 758 crore, which is 63 per cent more than the same 6 months period last fiscal.
The numbers are supported by all business verticals with core business firing on all cylinders, the company said, adding capital market business net income jumped 52 per cent annualised, and asset and wealth management verticals grew over 226 per cent. This was led by a 44 per cent growth in AMC's profit, and an 88 per cent in wealth management and a 12x growth in private equity business driven by strong profit on exit of investment, Motilal Oswal, managing director and chief executive, said.
Asset under advisory stood at Rs 2.9 lakh crore, led by all-time high AUM across AMC, wealth and distribution businesses.
Speaking on the performance, Oswal said all the businesses delivered strong and sustainable performance delivering highest-ever quarterly and half-yearly revenue and profit. "Our retail broking business, which is our cash cow, has achieved new highs on various parameters and benefitting from market expansion and industry consolidation."
"Our strategy of investing profit in our own equity investment products has seen the highest ever profit being booked and as a result our networth has touched a new high," Oswal noted.
Housing finance business, which has been lagging, is finally getting geared up for profitable growth, he added. "Each of our seven businesses offers headroom for growth."
Capital markets comprising retail broking, institutional equities and investment banking business, revenue grew 44 per cent to Rs 608 crore in Q2 and to Rs 1,122 crore, up 46 per cent in H1FY22. This vertical has contributed 48 per cent of the total revenue and earned 52 per cent more in net profit at Rs 121 crore in Q2 and at Rs 200 crore in H1 up 55 per cent. This was mainly led by healthy volume growth of 96 per cent on an annualised basis.
Asset management businesses, which comprises the AMC, PE and private wealth management, also performed well. Asset management business AUM across MF, PMS and AIF stood at Rs 49,563 crore, up 32 per cent on-year, it returned a strong 44 per cent growth in net at Rs 42 crore, while private equity revenue stood at Rs 151 crore and net at Rs 86 crore including profit on exit of investments of Rs 83 crore in Q2.
Wealth management business AUM grew by 57 per cent to Rs 31,515 crore in Q2 and earned 36 per cent more revenue at Rs 48 crore. Overall asset and wealth management revenue stood at Rs 346 crore, up 94 per cent on-year in Q2, and contributed 23 per cent of consolidated revenue and earned net profit of Rs 144 crore, up 226 per cent on-year which is 25 per cent of the consolidated profit.